EVM APPLICATION AND THRESHOLDS

EVM system compliance and use is required on all acquisitions for development designated as major in accordance with PERFORMANCE MANAGEMENT REFERENCE CARD
OMB Circular A-11 and the Capital Programming Guide. At NASA, EVM is required for development or production Revised August 2018
contracts and subcontracts (including those for flight and ground systems, institutional requirements (facility, information
technology, investment, etc.) valued at or greater than $20 million. EVM is required on NASA spaceflight projects with life ETC
cycle cost of $250 million or greater. SMD Mission Risk Class-D space flight projects and contracts with a LCC of up to EAC
$150M (not including launch costs) have an approved deviation from the EVM requirements of NFS 1834.201. Class-D
missions with a LCC of up to $150M (not including launch costs) should use the processes per the SMD Class-D Total Allocated Budget (TAB)
Tailoring/Streamlining Policy. EVM reporting begins no later than 60 days post Key Decision Point-C (KDP-C). The Management Reserve (MR)
primary consideration for EVM applicability is the nature of the work, associated risks, and the value of the effort. EVM is BAC
not recommended on Firm Fixed Price contracts or contracts that are exclusively LOE. Refer to the NASA Earned Value PMB
Management website at https://evm.nasa.gov/.
EVM required on NASA spaceflight projects with a life cycle cost of $250 million or greater. EVM reporting begins no

Schedule Slip
Schedule Variance
later than 60 days post KDP-C. Projects with EVM requirements will use the NASA EVM capability. Cost Variance
Project
$ “Actuals”
ACWPCum
Development/P EIA-748 NASA EVMS Cost “Plan”
roduction EVMS Solicitation & Report BCWSCum
Contract (Total Standard Contract IPMR DRD
“Earned”
Estimated (PCD 15- Clause DRD WBS (Non- Supplier Flow
BCWPCum
Value) 05) (PCD15-05) (PIC 15-06) DRD EVM) Down (EVM)

Cost or Fixed Validation Required: Required: Required Not Time Time

Now
Completion
Date
Price Incentive Required NFS Formats 1, 3, 5 Required
Type 1852.234-1 and 6 (IMS);
≥ $100M & NFS Rec.:
1852.234-2 Formats 2, 4 VARIANCES Positive is Favorable, Negative is Unfavorable OVERALL STATUS*
and 7 Cost Variance CV = BCWP – ACWP % Schedule = (BCWSCUM / BAC) * 100
(-)=over (+)=under budget CV % = (CV / BCWP) * 100 % Complete = (BCWPCUM / BAC) * 100
Cost or Fixed Compliance Required: Required: Required Not Schedule Variance SV = BCWP – BCWS
Price Incentive with NFS Formats 1, 3, Required % Spent = (ACWPCUM / BAC) * 100
(-)=behind (+)=over schedule SV % = (SV / BCWS) * 100
Type guidelines; 1852.234-1 5, and 6 (IMS); *Note: For total contract, budget at
Variance at Completion VAC = BAC – EAC
$20M but validation & NFS Optional: Prime completion should include management
< $100M not required 1852.234-2 Formats 2, 4, contractor VAC % = (VAC / BAC) * 100
reserve and undistributed budget
with and 7 responsible EFFICIENCIES
Alternate 1 for EVMS Cost Efficiency CPI = BCWP / ACWP Favorable is > 1.0, Unfavorable is < 1.0
requirements CPI: For every $1.00 of actual cost, we earned $X worth of work planned
Cost or Fixed Not required Not required Required: Required Required on sub- Schedule Efficiency SPI = BCWP / BCWS Favorable is > 1.0, Unfavorable is < 1.0
Price Incentive (optional at unless PM Format 6 (IMS) If EVMS contractors SPI: For every $1.00 of work planned (scheduled), $X worth of work was accomplished or earned.
Type discretion of elects to Rec.: and IPMR using same
< $20M; Major PM) require EVM; Format 5 not rules as Baseline Execution Index (BEI) & Hit/Miss Task % (Favorable is > 1.0, Unfavorable is < 1.0)
Acquisition then apply (Formats 1, 3 required applied to BEI = Total Baseline Tasks Completed / (Total Tasks with Baseline Finish On or Prior to Current Report Period)
Non- NFS and 7 not prime Hit /Miss Task % = 100 * (Tasks Completed ON or PRIOR to Baseline Finish / Tasks Baselined to Finish within
development 1852.234-1 required unless contract. Current Report Period).
contracts & NFS PM elects to
1852.234-2 require EVM) CALCULATED ESTIMATE AT COMPLETION = Actuals to Date + [(Remaining Work) / (Performance Factor)]
with Examples:
Alternate 1
EACCPI = ACWPCUM + [ (BAC – BCWPCUM) / CPICUM ] – typically a best case
Firm Fixed Not required Not required Required: Required Not EACComposite = ACWPCUM + [ (BAC – BCWPCUM) / (CPICUM * SPICUM) ] – typically a worst case
Price > $20M Format 6 required
(IMS); Rec.:
TO COMPLETE PERFORMANCE INDEX (TCPI) § #
Format 5
TCPITarget = Work Remaining / Cost Remaining = (BAC – BCWPCUM) / (Target – ACWPCUM)
TCPI: For every $1.00 of cost, estimate to earn $X worth of work planned to finish on EAC
§To Determine the TCPI for BAC or EAC ; Replace TARGET with BAC or EAC
Jerald Kerby, Agency EVM Program Executive & MSFC EVM Focal Point
# To Determine the Contract Level TCPI for EAC, You May Replace BAC with TAB
jerald.g.kerby@nasa.gov
4 of 4 1 of 4
(256) 544-3243
 ACRONYMS
NASA Contractor & In-house Project Hierarchy ACWP Actual Cost of Work Performed – Cost actually incurred in accomplishing work performed aka Actual Cost (AC)
Contract Price or AUW Authorized Unpriced Work – Work formally authorized, but not yet negotiated/definitized
In-house Project Price BAC Budget At Completion – Total budget for total project/contract thru any given level
BCWP Budgeted Cost for Work Performed – Value of completed work in terms of the work’s assigned budget aka Earned
Total Allocated Budget Profit / Fees Value (EV)
Negotiated (no In-house equivalent)
Contract Cost Contract BCWS Budgeted Cost for Work Scheduled – Time-phased Budget Plan for work currently scheduled aka Planned Value (PV)
Budget Base Over Target BEI Baseline Execution Index – Similar to the SPI, the metric used to indicate the efficiency with which actual work has been
Authorized
Baseline accomplished when measured against the baseline. It compares the cumulative number of baselined tasks actually
Unpriced Work Overrun
completed each month to the cumulative number of baselined tasks scheduled to be completed each month. To assess
Performance Measurement whether the tasks actually completed as planned during a current month, calculate the Hit/Miss Task %.
Management
Baseline Reserve CA Control Account – Lowest WBS element assigned to a single focal point to plan & control scope / schedule / budget
CBB Contract Budget Base – Sum of the negotiated project/contract cost plus the estimated cost of authorized unpriced work.
Undistributed Control Summary Level It includes the PMB and MR. Customer approval is generally required to change it.
Budget Accounts Planning Packages CPI Cost Performance Index – A measure of cost efficiency. Worth of work for every dollar spent. It compares BCWP to the
actual cost to perform that work (CPI = BCWP / ACWP).
Work Packages Planning Packages CPM Critical Path Method – A sequential path of tasks in a network schedule that represents the longest overall duration
from “time now” through project completion. Any slippage of the tasks in the critical path will increase the project duration.
DRD Data Requirements Description – The document that describes the specific data required for supplier/contract
Refer to NASA EVM Website at https://evm.nasa.gov/ for NASA EVM policy, requirements, guidance, etc. management and reporting.
EAC Estimate At Completion – Estimate of total cost for project/contract thru any given level generated by Supplier (Ktr),
EVM REGULATIONS/REQUIREMENTS (https://evm.nasa.gov/regulations.html unless otherwise noted) PMO, DCMA, etc. = EACKtr / PMO / DCMA. The Supplier’s EAC is also known as Latest Revised Estimate (LRE).
o OMB Circular A-11, Appendix J ETC Estimate To Complete – Expected/anticipated costs needed to complete the remainder of work on project/contract.
o NASA NPD 7120.4 – NASA Engineering and Program/Project Management IBR Integrated Baseline Review – A risk-based review conducted by Program/Project Management to ensure mutual
o NPR 7120.5 – NASA Space Flight Program and Project Management Requirements - defines when EVM is understanding between the customer and supplier of the risks inherent in the supplier’s performance measurement
required and requires projects with EVM requirements to use an EVM system that complies with the 32 Guidelines baseline (PMB) and to ensure the PMB can be accomplished within the authorized schedule and budget.
found in the EIA-748 Earned Value Management System (EVMS) Standard at IPMR Integrated Program Management Report – Consists of seven formats containing data for measuring cost and schedule
https://www.acq.osd.mil/evm/resources/policies-guidance.shtml performance on Government acquisition contracts (Formats 1-5 formerly the Contract Performance Report (CPR)):
o NPR 7120.7 – NASA Information Technology and Institutional Infrastructure Program and Project Management Format 1 defines cost and schedule performance data by product-oriented WBS elements.
Requirements Format 2 defines cost and schedule performance data by supplier's organization structure.
Format 3 defines changes to the Performance Measurement Baseline (PMB).
o NPR 7120.8 – NASA Research and Technology Program and Project Management Requirements
Format 4 Defines staffing forecasts.
o NASA Procurement Class Deviation (PCD) 15-05, Class Deviation to NFS 1834.2, 1834.203-70, 1852.234-1,and Format 5 is a narrative report used to provide the required analysis of data contained in Formats 1-4 and 6.
1852.234-2 – EARNED VALUE MANAGEMENT SYSTEM, November 10, 2015 Format 6 defines and contains the Integrated Master Schedule (IMS).
o NASA Procurement Information Circular (PIC) 10-17, Class Deviation to NFS 1816.405-274: Award Fee Evaluation Format 7 defines the time-phased historical and forecast cost submission.
Factors are not Directly Tied to EVM Metrics , November 15, 2010 LOE Level of Effort – Effort of a general or supportive nature that does not produce definite end products. Examples include
o NASA PIC 15-06, Guidance on the Integrated Program Management Report (IPMR) for EVM, April 28, 2015 supervision, program administration and contract administration.
o NASA EVM Contract Requirements Checklist NCC Negotiated Contract Cost – Contract Price Minus profit or fee(s). For In-house projects, the agreed to value.
o NASA/Defense Contract Management Agency Memorandum of Understanding OTB Over Target Baseline – Sum of CBB + additional budget approved for remaining work.
PAC Price At Completion – EAC Plus Adjusted Profit or Fee(s).
EVM REPORTS (https://evm.nasa.gov/reports.html unless otherwise noted)
PMB Performance Measurement Baseline – The time-phased budget plan for authorized work.
o The Integrated Program Management Report (IPMR), o Instructions for Requesting Access to Empower
PP Planning Package – Far-term effort not yet defined into WPs.
Data Item Description DI-MGMT-81861 (latest version) o To request the NASA Schedule Test and Assessment
SLPP Summary Level Planning Package – Far-term contract activities not yet defined into CAs.
at https://www.acq.osd.mil/evm/resources/PG- Tool (STAT), see instructions on the NASA EVM
DIDs.shtml, is a consolidation of the Contract website at https://evm.nasa.gov/handbooks.html SPI Schedule Performance Index – A measure of schedule efficiency. It compares the BCWP to the work scheduled
(SPI = BCWP/BCWS). An index of 1.0 means the work is being performed right to the schedule. SPI > 1.0 means
Performance Report (CPR) and the Integrated Master o Reporting for Non-EVM Contracts - see Appendix E
that the work is ahead of schedule. SPI < 1.0 means that the work is behind schedule.
Schedule (IMS). See NASA IPMR Data Requirements of the Earned Value Management (EVM)
TAB Total Allocated Budget – Sum of all budgets for work on in-house project or contract = NCC, CBB, or OTB.
Description (DRD) Guide for preparation of the IPMR Implementation Handbook for sample DRDs
UB Undistributed Budget – Budget associated with specific work scope or authorized changes that have not been
DRD. https://evm.nasa.gov/handbooks.html
assigned to a CA or lower level WBS element.
o Sample Standard Analysis Package
UFE Unallocated Future Expenses – Estimated cost that cannot be allocated to WBS elements due to risk and future needs.
EVM IMPLEMENTATION HANDBOOKS (https://evm.nasa.gov/handbooks.html ) VAC Variance at Completion – Comparison of the BAC to the EAC through any given level (expected overrun or underrun of
o EVM Implementation Handbook o NASA Work Breakdown (WBS) Structure Handbook total costs)
o Integrated Baseline Review (IBR) Handbook o EVM Reference Guide for Project Control Account WP Work Package – Near-term, detail-planned activities within control account; unit of work at level work is performed.
o NASA Schedule Management Handbook. Managers WBS Work Breakdown Structure – A hierarchical product-oriented division of program tasks depicting the breakdown of work
2 of 4 scope for work authorization, tracking, and reporting purposes. 3 of 4